Cabinet nod to Rs 22,810 cr Atmanirbhar Bharat Rojgar Yojana to boost fresh hiring

 

 

 

Union Cabinet on Wednesday approved Rs 22,810 crore outlay for the Atmanirbhar Bharat Rojgar Yojana (ABRY) that aims at encouraging businesses to do fresh hiring amid the COVID-19 pandemic. “The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has given its approval for Atmanirbhar Bharat Rojgar Yojana to boost employment in formal sector and incentivise creation of new employment opportunities during COVID recovery phase under Atmanirbhar Bharat Package 3.0,” an official statement said.

 

The Cabinet has approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for entire Scheme period - 2020-2023, it added. Under the scheme, the Government will provide subsidy for two years in respect of new employees engaged on or after October 1, 2020, and up to June 30, 2021, Labour Minister Santosh Gangawar said in a briefing on the Cabinet decision. The Government will pay both 12 per cent employees’ contribution and 12 per cent employers’ contribution i.e. 24 per cent of basic wages towards EPF (employees provident fund) in respect of new employees in establishments employing up to 1,000 employees for two years.

 

However, the Government will pay only employees’ share of EPF contribution i.e. 12 per cent of wages in respect of new employees in establishments employing more than 1,000 employees for two years. An employee drawing a monthly wage of less than Rs 15,000, who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before October 1, 2020, and did not have a Universal Account Number or EPF Member account number prior to October 1, 2020, will be eligible for the benefit. Any EPFO member possessing Universal Account Number drawing a monthly wage of less than Rs 15,000, who exited employment during COVID pandemic will also be eligible to avail the benefit.